Janus Henderson's Kerley: Why China's promise overrules trade war fears

G20 summit this week

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Janus Henderson's Kerley: Why China's promise overrules trade war fears

More than half of the world's population lives in the Asia Pacific region and, within this part of the world, the largest and most powerful market in terms of economic growth is China. The country's economy is the largest in the world in purchasing power parity terms, and is home to five of Forbes' top ten largest public companies in 2018 - with the US providing the other five.

As such, any prudent investor would rightfully be concerned about the so-called ‘trade war' between the US and China, which has escalated throughout the year. When the first signs of the trade war emerged, I did not believe it would continue over the long term, because it is not in the best interests of anyone. However, it is difficult to see how either side pulls back now as both Donald Trump and Xi Jinping want to win. 'A policy mistake of gigantic proportions': Markets and experts react as China hits back at Trump's trade tariffs As a result, we have trimmed some positions in the H...

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